WORLD FOREX:Dollar Falls Vs Yen, Euro; Economy, Fed Talk Weighs

The dollar fell against its key rivals after disappointing U.S. economic data fanned speculation that the Federal Reserve could take additional measures to boost an economy that investors worry is slowing down.

The dollar sank to an eight-month low against the yen and a three-month low against the euro as concerns about the economy and the Fed's possible response accelerated.

A continuing stream of weak U.S. data "would fuel concerns that the Fed would have to take some monetary action," said Jessica Hoversen, fixed income and foreign exchange analyst at MF Global in Chicago.

Any move to extend extraordinary measures to stimulate the economy would come as large investors are in any case reevaluating the outlook for the dollar, which has stumbled broadly in recent weeks. UBS AG cranked up its one-month euro forecast by 6% this week, a big revision from the world's second-biggest currencies-dealing bank and a further sign that the common currency's current rally is taking seasoned market-watchers by surprise..........http://is.gd/dSc8m